Q-2) On January 1, 2020, Arizona Company purchases a machinery for $360,000 to use it in the production department. The Chief Financial Officer of the company considers the alternatives of the depreciation methods. The estimated useful life of the machinery is 5 years. The residual value of the machinery at the end of the useful life is immaterial. Number of estimated units that will be produced each year are 45,500; 44,100; 41,500; 39,800 and 29,100 units in the 1.,2., 3.,4. and 5. year, respectively. Required: a) Compute the depreciation expense for each year, the accumulated depreciation and the book value of the machinery as of the end of each year for "straight-line", "double-declining balance","sum-of-the-years' digits", and "production" methods of depreciation by preparing a table. Which depreciation method should be chosen for what reason? b) Assume that Arizona Company decides to sell the machinery at the end of the 3. year for $140,000. Make the journal entry under each depreciation method. c) What is the purpose of recording depreciation expense? Do you think is it necessary? Briefly explain with your own words.